Federal Direct Subsidized Loan

Who is eligible?

How do I apply?

BHSU will send you an award letter indicating your maximum Federal Direct Subsidized Loan eligibility and will provide you with instructions on how to accept it. Please review the Award Handbookfor your rights and responsibilities as a student borrower and if you have questions, please contact the Financial Aid Office.

Once student has completed paperwork, the student is awarded aid. Subsidized Direct Loans are based on need left after all other need-based is awarded, except for Perkins Loans. When reviewing eligibility, all Subsidized will be given prior to Unsubsidized.

Amount Available

Maximum Annual Eligibility (beginning July 1, 2007):

Freshman -- $3,500

Sophomore -- $4,500

Junior/Senior -- $5,500

Cumulative Totals:

$23,000 undergraduates

Additional unsubsidized loan available for Independent Students

Cost & Fees

up to 1.1% fee on each loan.

Interest is paid by federal government during the grace period on loans disbursed prior to July 1, 2012. After July 1, 2012, all new loans interest begins at time of dropping below half-time/graduation. Begining July 1, 2014, the federal government will pay interest during grace period on new loans.

Repayment

Interest rate is a fixed of 4.29% beginning July 1, 2015 for undergraduate students.
New interest rate will be determined each July 1st of each year, with that interest rate fixed for lifetime of loan.

Interest is paid on the Subsidized Direct Loan by the federal government while the student is in school (except between July 1, 2012, and June 30, 2013, those loans will NOT have interest paid during the grace period or deferment periods).

Who is eligible?

How do I apply?

BHSU will send you an award letter indicating your maximum Federal Direct Unsubsidized Loan eligibility and will provide you with instructions on how to accept it. Please review the Award Handbookabout your rights and responsibilities as a student borrower and if you have questions please, contact the Financial Aid Office.

Once student has completed paperwork, the student is awarded aid. Subsidized Direct Loans are based on need left after all other need-based is awarded, except for Perkins Loans. When reviewing eligibility, all Subsidized will be given prior to Unsubsidized.

Cost & Fees

Interest begins at time of disbursement. Students are encouraged to make interest payments while in school, however, they can let the interest capitalize making the loan an extremely higher loan.

Repayment

Interest as of July 1, 2015 is 4.29%; new interest rates are determined each July 1, with the interest rate being fixed for the life of that loan.

Interest begins accruing from the date the funds are disbursed. The borrower may make the interest payment or have them capitalized. Payments may be deferred up to six months after graduation, withdrawal, or dropping below half-time enrollment. $50 minimum monthly payment; 10-year maximum repayment period.

For more information about repayment please contact your loan servicer(s).

Review www.nslds.ed.gov for your servicer and total borrowings of federal loans.

Federal Direct Unsubsidized Loan - Independent Student

Who is eligible?

Independent undergraduate who do not qualify in whole or in part for a Federal Direct Subsidized Loan. Graduate students only qualify for Direct Unsubsidized Loan beginning July 1, 2012.

How do I apply?

BHSU will send you an award letter indicating your maximum Federal Unsubsidized Direct Loan eligibility and will provide you with instructions on how to accept it. Please review the Award Handbook and if you have questions please, contact the Financial Aid Office.

Cost & Fees

up to 1.2% fee on each loan.

Interest begins at time of disbursement. Students are encouraged to make interest payments while in school, however, they can let the interest capitalize making the loan an extremely higher loan. Interest rate for undergraduate students is 4.29% on July 1, 2015; graduate students were 5.84% on July 1, 2015. New interest rates to be determined July 1 of each year.

Repayment

Interest begins accruing from the date the funds are disbursed. The borrower may make the interest payment or have them capitalized. Payments may be deferred up to six months after graduation, withdrawal, or dropping below half-time enrollment. $50 minimum monthly payment; 10-year maximum repayment period.

For more information about repayment please contact your loan servicer(s).

Review www.nslds.ed.gov for your servicer and total borrowings of federal loans.

Federal Direct Parent Loan For Undergraduate Students (PLUS)

Who is eligible?

Natural or adoptive parents of dependent students who meet federal government eligibility requirements can apply. A credit analysis will be required. Please review the Award Handbook for your rights and responsibilities as a parent borrower and if you have questions please, contact the Financial Aid Office.

How do I apply?

The student must complete the Free Application for Federal Student Aid at: www.fafsa.gov.

Federal Grants

Who is eligible?

Federal Pell and Federal Supplemental Educational Opportunity (SEOG) grants are awarded on the basis of financial need to undergraduate students. Federal TEACH Grant is based on GPA or academic testing and is available to both undergraduate and graduate students. The agreement to serve and counseling (found at: www.teach-ats.ed.gov) must be completed if student is eligible. TEACH recipients must teach 4 years in a high-need field in a low-income school as defined by the Department of Education. For additional information on federal grants please review the Award Handbook or contact the Financial Aid Office.

How do I apply?

The FAFSA is available after January 1 of each year for the following summer, fall and spring semesters' aid. Funding is limited for SEOG. Students who submit the FAFSA by March 1 (the priority deadline) will be considered for SEOG.

Loan Counseling

Loan Entrance Counseling

First time borrowers must complete Loan Entrance Counseling and a Master Promissory Note (MPN) on studentloans.gov (see link below).

Federal Perkins Loan

Who is eligible?

How do I apply?

Complete Free Application for Federal Student Aid at: www.fafsa.gov. Funding is limited applications must be submitted by March 1st for priority consideration.

BHSU will send you an award letter indicating your maximum Federal Perkins Loan eligibility and will provide you with instructions on how to accept. Please review the Award Handbookand if you have questions, please contact the Financial Aid Office.

Amount Available

Undergraduate:

Up to $4,000 per year

Up to $20,000 cumulative total for the bachelor's degree.

Graduate:

Up to $6,000 per year.

Up to $40,000 cumulative total for the master's degree, including undergraduate loans.

Cost and Fees

Interest during the repayment period.

Repayment

There are cancellation possibilities for those teaching full-time at low-income schools, nursing, law enforcement and other public service professions. (visit with Perkins Loan Officer in Student Financial Services). See details on cancellation at studentloans.gov.

The Federal Perkins Loan will be ceasing with the 2017 year. No new funds will be available. A Perkins Loan can be consolidated with Direct Loans, however, your interest rate will change to a weighted average of all the loans. Beginning 2016, new undergraduate borrowers will have Subsidized and Unsubsidized Direct Loans counted as a resource before Perkins Loan is awarded as a need-based loan. Current undergraduate BHSU Perkins Loan students who have an outstanding balance will have Subsidized Direct Loan counted as a resource prior to Perkins will be awarded. Disclosure statement on borrower's rights as Perkins Loan phases out after 2017.

Payments for the Perkins Loan can be made out to Black Hills State University and sent to